The accounts have been prepared primarily on historical cost convention
 and in accordance with generally accepted accounting practices.  i.
 Revenue Recognition
 
 a.  Income from guest accommodation is recognised on a day to day basis
 after the guest checks into the Hotels. Income from Food and Beverages
 are recognised at the point of serving these items to the guests.
 Income stated is exclusive of amount recovered towards Sales Tax,
 Luxury Tax, and Service Tax.
 
 b.  Insurance claims are recognized as and when they are settled /
 admitted.
 
 ii. Annual lease rentals on lease hold land at Chandigarh and Chennai
 is charged to revenue.
 
 iii.  Foreign Exchange Transactions
 
 Transactions in foreign currencies are recorded at the exchange rate
 prevailing on the date of transactions. Exchange differences arising on
 foreign currency transactions are recognised as income or expense in
 the period in which they arise.
 
 iv.  Inventories
 
 Inventories are valued at lower of cost, ascertained at Weighted
 Average Method, or realizable value.
 
 v.  Fixed Assets and Depreciation:
 
 a.  Fixed Assets are stated at historical cost of acquisition, which is
 inclusive of freight, installation, taxes and other incidental
 expenses.
 
 b.  Depreciation on various assets put to use is provided on straight
 line method as per schedule XIV to the Companies Act, 1956.
 
 c.  Depreciation on additions made to assets in licensed property is
 provided at the rates worked out on the basis of balance license
 period.
 
 vi. Preliminary expenses of erstwhile Sri Tripurasundari Hotels Limited
 merged with the Company, are being written off over a period of 5 years
 from the year of commencement of operations of the hotel at Chennai.
 
 vii. Contingent liabilities are indicated by way of note and will be
 provided / paid on crystallization.
 
 viii. Retirement Benefits:
 
 a.  Defined Contribution Plan
 
 Companys contribution paid/payable during the year to Provident Fund,
 Employees State Insurance Corporation and Labour Welfare Fund are
 recognized in the Profit and Loss Account.
 
 b.  Defined Benefit Plan
 
 Gratuity to employees is covered under Group Gratuity Life Assurance
 Scheme. At the reporting
 
 date, Companys liability towards gratuity is determined by independent
 actuarial valuation using the projected unit credit method which
 considers each period of service as giving rise to an additional unit
 of benefit entitlement and measures each unit separately to build up
 the final obligation. Actuarial gain and losses are recognized in the
 Profit and Loss Account as income or expense. Obligation is measured at
 the present value of estimated future cash flows using a discount rate
 that is determined by reference to market yields at the Balance Sheet
 date on Government Bonds where the currency and terms of the Government
 bonds are consistent with the currency and estimated terms of the
 defined benefit obligation.
 
 Company recognizes the undiscounted amount of short-term employee
 benefits like Leave Encashment, Leave Travel Assistance, etc., during
 the accounting period based on eligibility of employee as per Companys
 rules in this regard.
 
 ix.  IMPAIRMENT OF ASSETS:
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generation unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognized in the profit and loss account. If at the balance sheet date
 there is an indication that if previously assessed impairment loss no
 longer exists, the recoverable amount is reassessed and the asset is
 reflected at the recoverable amount subject to a maximum of depreciated
 historical cost.
 
 x.  Taxes on income:
 
 a.  Provision is made for Income-tax liability estimated to arise on
 the profit for the year at the current rate of tax in accordance with
 the Income-tax Act, 1961.
 
 b.  In accordance with the Accounting Standard - 22, Accounting for
 taxes on income, the Company has recognised the deferred tax liability
 in the accounts, whereby:-
 
 - Deferred tax liability resulting from timing differences between book
 and tax profits is accounted for at tax rate enacted or substantively
 enacted at the balance sheet date.
 
 - Deferred tax assets are recognised only when there is virtual
 certainty, supported by convincing evidence, that such assets will be
 realised.
 
 xi.  Segmental Reporting:
 
 Disclosure of segment - wise information is not applicable as
 hoteliering is the Companys only business segment
 
 xii. Long term investments are carried at cost.  Diminution in value of
 investments, if any, other than temporary, will be provided for on an
 individual basis.
 
 xiii. Borrowing Costs:
 
 Interest and other borrowing costs on specific borrowings, attributable
 to qualifying assets are capitalized. Interest not attributable to
 qualifying assets is charged to revenue account in the year in which it
 is incurred.
 
 xiv. Earnings per share:
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the period attributable to equity share holders by weighted
 average number of equity shares outstanding during the period.